The Difference Between Sworn Statements and Lien Waivers—and When to Use Which

Construction projects generate a tremendous amount of paperwork—much of it required for payment. Two documents that come up often are sworn statements and lien waivers. If you’re new to construction accounting or pay app processes, this guide breaks down what each document is, how they differ, and when to use them.

Read on to learn the basics of sworn statements and lien waivers, including:

• The purpose and legal implications of each type of document
• The difference between sworn statements and lien waivers
• When to use which document
• Tips to manage sworn statements and lien waivers

Both sworn statements and lien waivers exist to protect property owners and general contractors (GCs) from having a mechanic's lien filed against them, but they do it in different ways.

What is a Sworn Statement?

A sworn statement lists all contractors and suppliers that provide labor and/or materials on a project. Owners and GCs use it for transparency into who's working on a project and how much they're owed, so they can track payments and watch for potential payment issues before they become expensive ones.

When you sign a sworn statement, you swear that no one other than those listed needs to be paid for the project. If the information in the statement isn't accurate, you can be charged with perjury. This isn't a form you want to rush through at 4:45 PM on a Friday.

For every company listed, you must include:

• Name, address, and telephone number of every contractor and supplier working on the project
• The total amount for their contract
• Any amount previously paid
• Payment currently owed
• The remaining balance on each contract

What is a Lien Waiver?

Lien waivers are documents subs must sign when requesting or receiving payment. GCs often also require you, your lower-tier subs, and your vendors to sign and submit lien waivers, and every state has different rules associated with lien waivers, including required statutory forms. It's their assurance that they won't end up with a lien on their property for payments fulfilled.

When you sign a lien waiver, you give up your right to file a mechanic's lien in the future for that portion of the project. For a deep dive into everything you need to know about lien waivers, check out our lien waiver webinar.

Key Differences Between Sworn Statements and Lien Waivers

Sworn Statements vs. Lien Waivers

States With Specific Sworn Statement Rules

Requirements for these documents vary by state, contractor, and project. A handful of states specifically regulate sworn statements. Several more regulate a functionally similar document, often called a contractor's affidavit or a final payment affidavit, that serves the same purpose under a different name.

Michigan

Michigan requires contractors to use its statutory sworn statement form under the state's Construction Lien Act (MCL 570.1110). The statute itself doesn't explicitly mandate notarization, but because the official form includes a notary block, notarization is standard practice and often required contractually. It's customary, even expected, but not as clear-cut in law as Illinois.

Illinois

Illinois doesn't require sworn statements to be on a specific form, but it does require them to be notarized. Courts have invalidated liens when sworn statements weren't properly executed under oath.

Florida

Florida's version is called a Contractor's Final Payment Affidavit, and it's a hard legal requirement under Florida Statute §713.06(3)(d). Before a contractor can file a lien foreclosure lawsuit, they must serve this notarized affidavit on the owner at least five days beforehand, either confirming every lienor has been paid in full or listing each one who hasn't and how much is owed. Florida courts treat this as a strict precondition. Miss the deadline or skip the affidavit, and you can lose your ability to enforce an otherwise valid lien.

Texas

Texas has a Final Bills-Paid Affidavit requirement under Property Code §53.259, but it's written specifically for residential construction contracts, not commercial ones. On commercial and public projects in Texas, owners and agencies commonly require a similar notarized "Final Bills Paid Affidavit" contractually, even though the statute itself doesn't require it outside residential work. If you're bidding on Texas public work, expect to see this show up in the contract regardless of project type.

Tennessee

Tennessee requires the prime contractor to deliver an affidavit and receipt to the property owner upon completion of the contract and receipt of the final contract price (Tenn. Code §66-11-205). Like Michigan and Illinois, Tennessee's statute explicitly uses the term "sworn affidavit" and even prescribes substantially what the form should say.

Sworn Statement Requirements by State

States With Specific Lien Waiver Rules

Lien waivers aren't legally required in any state, but many GCs now contractually require them (always check your contract terms). Separately, 12 states—Arizona, California, Florida, Georgia, Massachusetts, Michigan, Mississippi, Missouri, Nevada, Texas, Utah, and Wyoming—require the use of statutory lien waiver forms if lien waivers are being exchanged on a project. In those states, you must use the exact waiver language and structure provided for your waiver to be valid.

For the full picture across every state plus D.C., see our lien waiver requirements by-state guide.

When to Provide a Sworn Statement or Lien Waiver

There are few universal standards around these documents. Whether you need them varies from project to project. So how do you know when to provide a sworn statement or lien waiver?

One approach is to submit them whenever the GC or property owner requests them.

• They can ask for a sworn statement at any time. It typically comes up after you submit a pay app, most commonly for final payment.
• Conditional lien waivers are expected with the pay app package; unconditional waivers are expected after the check clears. 

A better strategy is to be proactive. Waiting for someone to request a statement or waiver only causes payment delays. Review every contract ahead of time so you understand what's expected on each job.

We also encourage subs to make sworn statements and lien waivers part of their standard pay app process. Submit these docs with your pay app package, and you'll build better relationships with GCs and get paid faster.

Tips to Manage Sworn Statements and Lien Waivers

Beyond being proactive, here are three additional tips for effectively managing sworn statements and lien waivers.

1. Use the right form.

This is easier said than done. In most states, GCs have their own proprietary forms, so it's always worth checking which version they want you to use.

Remember, Michigan, Florida, Texas, and Tennessee all require or commonly expect specific statutory language for their sworn statement or affidavit equivalents. And 12 states have standardized lien waiver forms that you must use for a lien waiver to be valid in those states.

One way to ensure you're always using the right form is to set up a forms library with every GC's required documents. (Or use Siteline, and we’ll generate digital versions of all your forms and track when to use them all.) 

2. Verify (and automate) for accuracy.

For sworn statements, you need to list every supplier and lower-tier sub and double-check all your calculations. Make sure the balance to complete matches your continuation sheet. Why? GCs will come back to you if they find discrepancies, and you'll end up dealing with payment delays and a dented relationship.

Siteline can take some of that manual work off your plate. Through accounting system integrations, it pulls in A/P invoice data to automatically complete sworn statements and affidavit forms. Compliance Tracking also helps teams keep required documents organized and accounted for across projects.

3. Consistently collect lower-tier lien waivers.

We strongly recommend this as a best practice, regardless of whether GCs require it. If you set it as an expectation from the start, you'll always have waivers on hand when you need them. It'll also save you time, calls, and emails chasing them down later.

Siteline’s lien waiver management tools can streamline that process. Industrial Commercial Systems, for example, uses Siteline to manage more than 200 lien waivers each month, from digitizing forms and collecting signatures to packaging everything for submission to the GC.

If you're interested in streamlining lien waiver management, collecting waivers six times faster, and getting paid three weeks sooner, schedule a demo of Siteline today.

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FAQ: Sworn Statements and Lien Waivers

What is a sworn construction statement?

A sworn construction statement is a notarized document that lists every contractor, subcontractor, and supplier owed money on a project, along with what each one has already been paid and what's still owed. The person signing it swears, under oath, that the list is complete and accurate. Owners, lenders, and GCs use it to confirm exactly who can still file a lien before they release funds.

Is a sworn statement the same as a lien waiver?

No. A sworn statement discloses who's owed money on a project. A lien waiver gives up your right to file a lien for money you've already been paid. They often travel together in the same pay app packet, but they serve different legal functions and aren't interchangeable.

Do sworn statements need to be notarized?

In practice, yes, in nearly every state. Illinois requires it by statute. Michigan's law doesn't say so explicitly, but its official form includes a notary block, and owners, lenders, and GCs all expect one. Treat notarization as the default unless you've confirmed otherwise for your state and contract. See our guide to notarizing construction documents for the full state-by-state breakdown.

When does a GC typically request a sworn statement vs. a lien waiver?

GCs can request a sworn statement at any point, but it comes up most often around final payment, when the owner wants full visibility into who's still owed money before closing out the project. Lien waivers, by contrast, tend to show up with every pay app, right before payment goes out.

What happens if information on a sworn statement is inaccurate?

Since you sign a sworn statement under oath, inaccurate information can expose you to perjury charges and civil liability, not just an annoyed GC. In Illinois, courts have gone so far as to invalidate liens tied to sworn statements that weren't properly executed. Double-check every dollar amount before you sign.

Which states require a specific sworn statement form?

Michigan is the clearest example, requiring contractors to use its official statutory sworn statement form. Florida, Texas, and Tennessee have their own statutory affidavit requirements with prescribed language, even though they don't always use the term "sworn statement." Always check your state's statute and your contract before assuming a generic form will work.

What's the difference between a sworn statement and a contractor's affidavit?

The terms are used loosely, but there's a common distinction: a sworn statement usually tracks payments in progress, showing what's owed to each party throughout the project, while a contractor's affidavit is typically a single, final declaration confirming everyone's been paid, or listing exceptions, at closeout. Some states use one term, some use the other, and some use both to mean slightly different things. Always confirm which one your GC or state statute means.